‘If I Could Turn Back Time’ – Changes made by the Insolvency Law Reform Act 2016 (Cth) to the definition of relation-back day in the Corporations Act 2001 (Cth)

On 1 March 2017, the definition of ‘relation-back day’ found in the Corporations Act 2001 (Cth) was amended by the Insolvency Law Reform Act 2016 (Cth). The amendment will have a significant impact for directors, creditors and external administrators.

From 1 March 2017, in circumstances where a court application seeking orders that a company be wound up in liquidation has been made prior to that company entering voluntary administration, the relation-back day will be the date of the application and the relation-back day period will extend further into the past.